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Employees need to meet the set standard of performance so as to gain benefits and along with that organization also needs to reduce the level of bonuses which was previously given to employees (Gusdorf, 2011). The saved costs in this manner will help to save maximum jobs possible. On the other hand labor costs can even be reduced by providing limited training and focusing more on factors which is resisting team members from enhancing sales volume.
Downsizing is a common phenomenon which is adopted by an organization when it needs to reduce the total labor costs. However there are certain short term and long term implications of downsizing. In context of short term, such factor facilitates layoffs and enables management to focus on those employees who are productive by nature. The major short term implication of downsizing is that it helps to eliminate unnecessary costs from the system. On the other hand, the long term implication of such procedure is that it initiates insecurity within other team members. The employees might feel that if their performance level declines in any month then even they would lose their jobs. Downsizing in long term makes an organization less productive as it loses the capability to retain employees in the organization. The other long term implications are usually in the form of lack in motivation or enthusiasm within the firm which has a direct impact on end results. Often firms focus on short term implications of downsizing but long term implications are not given much importance.
Downsizing is one of the essential steps that need to be taken by PAC resources so as to sustain its overall operations. In order to enable 10 percent overall reduction in work force it is recommended to analyze performance of team members. This would help in determining which of the employees are not performing up to the set standard in the past few years. On the other hand a monitoring and evaluation technique can even be implemented to
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Chapter 2: Discussion Question 2
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